HomeMy WebLinkAbout0710 s~ , • _
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UNtFORt?t Covetv~N~rs. Borrower and l.ender covenant and agrre a~ foUuws:
1. Payment of P~Inc[pal and late~est. Horrowc~ shuU promptly pay whcn due the principai of and intcrest un ~hc
indebtedness evidenced by the Note, prepaymeot and late cha~ge~ a. provi~iedin the N~~te, and the principal of and intercs~
on aay Futuro Advances secured by ihis Mor~gage.
2. Fuads for Tues and lawrance. Subject ta appli~able law or to a written waiver by l.ender, Borrowcr shall pa}•
to I.ender on the day mo~thly installments of principal anJ intcre.t arc payahlc unJcr the Note, until the Notc is paid in full,
a sum (herein "FunJs") equa) to one-twelhh at the ycarly ~atcs and ascessmcnts which may att~in priority «vcr this
Mortgage, and ground rents o~ the Praperty, if any. plus one-twrlf~h of yearly prcmium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurancc, if any, all as rcasonabiy cstimaled initialty and irom
time to lime by I.endcr on thc basis of assessmcnts and bills and ~casvnablc estimates thercof. ~
'il~e Funds shal) be held in an institution thc Jepcnits or accounts of which are insured or guaranteed b)~ a Federal or
state agency (including Lender if Lcnder is such an institiuionl. Lcnder ~hall apply ~hc Funds to pay said taxcs, assessments,
insurance premiums and ground rems. t_ender may not charge lor h~~lding and ~pplying the Fund~, analy~zing ~aid acrnunt.
or verifying and c~mpiling said assessments anJ bills, unless l.ender Borrower interest un the Funds and applicable law
permits Le~der to make such a charge. Borrower and I~nder ma}' agrce in writing at thc tinee ~~f ex~cu~ion o[ this
Mortgage that inte~est an the FunJs shall he paid to Borrower, and unless such agreement is made or applicable law
requires such interest to bt paid, Lender shall not be reyuired to pay Barrowc[ :~ny interest or carnings on the Funds. I.cndcr
shall give to Borrower, without charge, an annual accuunting of thc F~unJ~ showing crcdits and debits to the FunJs and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional securiry for the sums .ecured
by this Mortgage.
If the amount of the Funds held by Lender, together with thc luwre monthly imtallmcnts of Ftmds payablc prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shaU e~ceeci thc amount reyuired tu pay said taxes,
assessments, insurance premiums and grvund rents as they fall due, such eue+.c shall be, at Borrower s option, either
prompUy repaid to Borrower or credited to Borrower on monthly installmcnts of Funds. If thc amount of thc Funds
held by Lender shal) not be sutt~icient to pay taxes, assessments, imurance premiums and ground rents as thr}• fall due,
Borrower shall pay to Lender any amount necessary to make'up ~he deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting paymcnt thercoL
Upon payment in full of all sums secured by this Mortgage, Lendcr shall promptly refund to Borrower any FunJs
held by I.ender. If under Paragraph IR hereof the Propcrty i~ u~ld or thc Propert~ is otherwise acq~ured by l.cnder, l.rnder
st~all apply, no later than immediately prior to the sale of the PropeAy or its acquisition h~• Lender, any Funds heW by
Lender at the time of application as a credit against the sums secured by this. Mortgage.
3. Application of Payments. Uolccs applicable law provides otherwise. all payments rercived by l.cnder unJcr the
Note and paragraphs 1 and 2 hereof shall be applicd by Lcnder first in paymcnt of amounts payablc to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Notc, then ro the principal of the Notc, and thcn to intcrest and
principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all ta~es, assessmcnts and othcr chargcs, fines and impositions at~ributable to
the Property which may attain a priority over this Mortgagc, and leasehold payments or ground rents, if any, in the manner ~
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making pa}ment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, aad in the event
Bormwer shall mai:e payment directly. Borrow•er shall prompQy furnish to I.ender receipts ev~dencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
roa
required to discnarge any sucn iien so iong as nurruwt;r S/l:tll :16'ICC lu w~~in~g iV U~i: ~idyu~ciu v~ u~a. vv..bu::':.: 5..~:.. ..j
suc6 lien in a manner acceptable to l.ender, or shall in gocxi faith contcst such lien by, or Jefend enforcement of such lien in,
legal proceedings which, operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvemcnts now existing or her~after erected on the Properry insured
' against loss by fire, hazards included within the term "extended coverage", anJ such other hazards as Lender may reyuire
j and in such amounts and for such periods as Lender may require; pmvided, that Lender shall not reyuire that the amount of
! such coverage ecceed that amount of coverage requ.ired to pay the sums secured by this Mortgage.
~ 'I~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
i that such approval shall not be unreasonably withheld. Alt premiums on insurance policies shall be paid in the manner
~ provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier_ -
; All insurancc policies anJ renewals thereof shall tx~ in form acceptable to Lender and shall include a stanJard mortgage
~ clause in favor of and in form acceptable t~ l.ender. Lender shall have the right to hold ~he policies and renew•als thercof,
~ and Borrower shall promptly furnish to Lender all_ renewal notices and all receipts of paid premiums. In the event of 1oss,
; Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make prcx~f of loss if not made promptfy
g by Borrower.
; Unless Lender andBorrower otherwise agree in writing, insorance prc~ceeds shall be applied to restoration or repair of
~ the Property damaged, prmided such rcstorat~on or repair is economically feasible and ihe security of this Mortgage is
; not ~hereby impaired. If such restoration or rcpair is not economicall}• feasiMe or if the security of this Mortgage would
; be impaired. the insurance proceeJs ~hall be applie~ to the sums secured by this Mortgage, with the excess, if any, paid
~ to Borrower. !f the Propert}~ is abandoncd h~• Borrowcr, or if Borrc~wer fails to respond to Lender within 30 days from the
~ date notice is mailed by Lender to Borrower that the insurance carrier ofTers to ;ettle a claim for insurance benefits, l~nder
~ is authorized to collect anJ apply the insurance proceeds at Lender's option either to restoration or repair of the Property
h or to the sums secured by this Mortgage.
~ Unless Lender and Borrower otherv?ise agree in writing, any such application of prcx;eeds to principal shall not extend
~ or postpone the d~e date of the monthl~• in~~allmentc referred to in paragraphs 1 anJ 2 hereof or changc the amount of
~ such installmenti. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and inrerest of Bormwer
~ in and to any insurance policies and in and to the proceecis thereof resulting from damage to the Property prior to the sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this l~tortgage immediately prior to such sale or
acquisition.
6. Preservadon and htaintenance of Property; Leasehulds; Condominiums; Planned Unit Devdopments. Sorrowcr
- shall keep the Property in good repair and shall not com~pit waste or permit impairment or deterioration of the Properry
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a anit in a
~ condominium or a planned unit development, Borrower shall pertorm all of Borrower's obligations under the declaration
? or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a conJominium or planned unit devclopment
rickr is ezecuted by Borrower and recorded together with this Mortgage, ~he covenants and agreements ot such rider
- shall be incorporated into and shall amend anJ supplement the covenants anJ agreements of this Mortgage as if the riJer
" were a part hereof.
~ 7. PrMectioa of Lender's Security. If Borrower fails t~ perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced w•hich materially afiects t_ende.r's interest in the Property, -
induding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh•ing a
bankrupCOr decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is nece.~.sary to protect [Rnder's interest, inclucling, but not limited to, disbursement of
[eason.ble attomey's tees and entry upon thc Property to makc rcpairc If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgagc. B~rn~wcr shall pay thc premiums requireJ to maintain such
• insurance in efiect until sueh time as the reqoirement for such insurance terminates in accordance w•ith Borrower s and
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